Apple Pay Later provides users in the US with a seamless and secure way to split the cost of an Apple Pay purchase into four equal payments spread over six weeks, with zero interest and no fees of any kind. Built into Apple Wallet and designed with users’ financial health in mind, Apple Pay Later makes it easy to view, track, and repay Apple Pay Later payments within Wallet.
Users can apply for Apple Pay Later when they are checking out with Apple Pay, or in Wallet. Apple Pay Later is available everywhere Apple Pay is accepted online or in-app, using the Mastercard network.
The company’s entrance to the market could raise new concerns over the lack of regulation in the sector, an expert said.
Apple’s venture into BNPL highlights “the growing opportunities offered by fintech,” GlobalData Associate Analyst Beyza Karakoy said.
“Apple’s acquisition of British fintech Credit Kudos earlier this year signaled its desire to expand further into financial services and reap the benefits offered by fintech,” Karakoy said. “However, the arrival of big tech will raise new concerns about the lack of regulatory oversight in the BNPL market. Apple’s move will represent a new challenge for fintech companies such as Klarna, Clearpay, and Affirm, which currently dominate the market.”
“Generation Z has been a big driver of the growth of BNPL services as they are wary of credit card fees and prefer to spread their purchases over a longer period,” GlobalData Associate Analyst Amrit Dhami said. “BNPL is convenient for consumers and lucrative for retailers as it reduces cart abandonment… The BNPL sector now has big tech’s stamp of approval.”
MacDailyNews Take: As we wrote last month:
With zero interest, no fees, and seamless, friction-free, ease of use, Apple Pay Later will indeed disrupt the “Buy Now Pay Later” market.
The world’s best customers will happily and organically use Apple Pay Later, not any of the soon-to-be also-rans who will be relegated to scrounging at the bottom of the barrel for those most likely to default.
See ya, Affirm et al. – wouldn’t want to be ya!
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Been using BNPL for my Apple purchases since I got the Apple Card. Brilliant!
BTW… “lack of regulation” is code word for punishing the BNPL services for customers purchasing items they can’t afford. Because nobody is ever responsible for their own choices. Ever.
Seeya, AaplBS et al, wouldn’t want to be ya!
Don’t worry, it’s something you can only aspire to.
BSNow Pay Later
Dreddd, you are judged to be full of BS
I must be missing something as I don’t see this of much value at all. For payments over six weeks it’s not really stretching anything out when I think relative to peoples pay cycles. I guess we’ll see how it goes
It works for biweekly pay cycles.
• 1st payment at purchase
• 2nd payment 2 weeks later
• 3rd payment 4 weeks later
• 4th payment 6 weeks later
Instead of putting aside $200 per paycheck for 4 pay cycles (6 weeks).
I don’t understand the business model for Affirm, Clearpay, and Klarna, but I totally see the value for Apple making it easy for customers to use their ecosystem. Apple has the cash and could use it as a loss leader to lock people in, but I’m sure there is a financial upside for Apple besides the ecosystem lock in.
“ With zero interest, no fees, and seamless, friction-free, ease of use, Apple Pay Later will indeed disrupt the “Buy Now Pay Later” market.”
How innovative and breakthrough!
I guess no one goes to Sam Ash…
Yep, Mr AppleBS is still Bonkers, Shockingly.
Mr BS, what is it like being so whacktoid every day? Must be tough for you, living with only 1/4 of the brainpower of a broken slug, the true meaning of your name?